††††† NECESSITY, FUNCTION AND CONFORMITY: KRS
380.050 requires the Attorney General to promulgate administrative regulations
necessary to carry out the provisions of KRS Chapter 380, relating to debt
adjusting. KRS 380.040(5) requires a person to file a registration form
developed by the Attorney General. This administrative regulation establishes
the registration and renewal process and incorporates by reference the forms to
be utilized by persons subject to registration.

††††† Section 2. Registration. (1) The
initial registration, or a renewal of registration, for a person engaging in
debt adjusting pursuant to KRS Chapter 380 shall be made on the
"Commonwealth of Kentucky Debt Adjuster Registration Statement". Each
person engaging in debt adjusting shall register by:

††††† (a) Completing the information required
by the registration form and submitting:

††††† 1. The legal name of the registrant;

††††† 2. Whether the
registration is an initial or renewal registration;

††††† 4. Other names
under which the registrant conducts business, and provide copies of all filings
in Kentucky regarding the use of an assumed name or names;

††††† 5. The
registrant's principal physical business location, which shall not be a post
office box, including street address, city, state, and zip code;

††††† 6. The
registrant's mailing address if different from the principal physical business
location, including address, city, state, and zip code;

††††† 7. The
registrant's telephone number;

††††† 8. The
registrant's fax number;

††††† 9. The
registrant's Web site;

††††† 10. The registrant's
agent for service of process in Kentucky, including name, address, city, state,
and zip code;

††††† 11. The location
where the registrant keeps or maintains records of its customers who reside in
Kentucky if different from the principal physical business location, including
address, city, state, and zip code;

††††† 12. The
registrant's type of business structure, indicating whether it is a
corporation, limited liability company, general partnership or joint venture,
limited partnership, natural person, or other type of structure and describing
such other type, the state under the laws of which the business structure was
formed, and including a copy of registrant's
certificate of authority to transact business in the Commonwealth of Kentucky
issued by the Kentucky Secretary of State or other evidence of authority to
transact business in the Commonwealth of Kentucky and describing this other
evidence;

††††† 13. A
description of the debt adjusting services the registrant will offer, sell or
provide to Kentucky residents, and identifying whether the registrant engages
in debt adjusting in relation to any debt that is primarily for personal,
family, or household use that is secured by a mortgage, deed of trust, other
equivalent consensual security interest on residential real property, or
collateral that has a mortgage lien interest in residential real property;

††††† 14. The
registrant's fee schedule, indicating the amount of the fee for initial set-up,
the amount of the consultation fee, the amount and frequency of the service fee
or other periodic fee, the amount of the bad check charge, and the amount and
frequency of any other fee or fees and describing these other fee or fees;

††††† 15. The
registrantís officers, directors, trustees, general partners, and sole
proprietor, as applicable, and any person having management responsibilities in
the registrant's business activities, including name, address, telephone
number, title or position held, and percentage of ownership interest;

††††† 16. The
financial institution in which the registrant will maintain a trust account
into which Kentucky consumer funds will be deposited and withdrawn to pay
respective creditors, including the name, address, city, state, zip code,
telephone number, and fax number;

††††† 17. A sample of
each type of contract or agreement for the registrant's debt adjuster services
with Kentucky residents;

††††† 18. The
aggregate amount of all deposits made with the registrant by all debtors in
each of the six (6) months preceding the filing of this registration;

††††† 19. The aggregate
amount of all deposits made with the registrant by all Kentucky residents in
each of the twelve (12) months preceding the filing of this registration;

††††† 20. Information
regarding each applicable insurance policy, including policy number, the name
of the insurer that issued the policy, whether the division is named as an
additional interested party, whether the insurance policy covers errors and
omissions, employee dishonesty, depositorís forgery, computer fraud, or
violations of KRS Chapter 380, the policy amount, the deductible amount, the
insurer's rating and the rating organization, and including a complete copy of
the insurance policy and declarations or, if a complete copy of the insurance
policy and declarations was previously provided to the division, a copy of the
current declarations or certificate of coverage applicable to the policy;

††††† 22. A list of
each state in which the registrant is registered or licensed to provide debt
adjuster services and the time of filing the registration;

††††† 23. The
signature and oath of the registrant, using the following oath: "I hereby
swear or affirm that I am an authorized representative of the registrant set
forth above, and that the statements contained herein and attachments hereto
are true and correct", and including the printed name and title of the
person signing the oath;

††††† 24. A completed notarization of the
signature and oath of the registrant, including the seal of the notary public;

††††† (b) Filing the original of the
registration form and accompanying documentation with the Office of the
Attorney General, Consumer Protection Division, 1024 Capital Center Drive,
Suite 200, Frankfort, Kentucky 40601; and

††††† (c) Paying the fee required by KRS
380.040(5).

††††† (2) Registration shall be valid for one
(1) year from the effective date stated in the written confirmation of
registration provided by the division, and may be renewed annually by making
the required filing and paying the renewal fee.

††††† (3) Deadline for filing.

††††† (a) The initial registration form and
fee shall be filed with the division prior to the date the registrant will
engage in debt adjusting pursuant to KRS Chapter 380.

††††† (b) The renewal registration form and
fee shall be filed with the division at least four (4) weeks prior to the
expiration of the registration.

††††† (c) The registration form shall be
considered filed as of the date it is:

††††† 1. Delivered to the Division; or

††††† 2. Deposited in the mail or with a
commercial postal service on or before the due date, as indicated by the
postmark applied by the U.S. Postal Service or official mark applied by a commercial
postal service. The mark made by a privately-held postage meter shall not be
considered in determining the date of filing.

††††† (4)(a) If the Division determines that
the registration form or the materials submitted with the registration form do
not comply with KRS Chapter 380 or contain all information or materials
required by KRS Chapter 380 or this administrative regulation, the division
shall notify the registrant in writing, specifying the noncompliance or the information
or materials that were not completed in or provided with the registration form.

††††† (b) The registration shall not be
effective until a registration form or an amended registration form is filed
with the division that contains all information and materials required by KRS
Chapter 380 and this administrative regulation.

††††† (c) The division shall provide a
written confirmation of registration.

††††† Section 3. A person shall not engage in
debt adjusting prior to the timely filing of a complete and accurate
registration which has been confirmed by the division pursuant to Section
2(4)(c) of this administrative regulation.

††††† (c) The registrant's compliance with
the requirements of KRS Chapter 380; and

††††† (d) The registrant's compliance with
the requirements of this administrative regulation.

††††† (2) The Commonwealth of Kentucky Debt
Adjuster Audit Checklist, Form DA-2, shall be used for purposes of the annual
audit and filed with the results of the annual audit.

††††† (3) The results of the audit and the
auditorís opinion filed with the division shall be accompanied by a
certification from each individual auditor joining in the opinion. The
certification shall include:

††††† (a) The auditor is an independent,
third-party certified public accountant;

††††† (b) The states in which the auditor is
licensed as a certified public accountant; and

††††† (c) The identification number for each
license.

††††† (4) The results of the audit and the
auditorís opinion, and the certification by each auditor, shall be filed with
each renewal registration form, and shall be no older than twelve (12) months
prior to the date of filing of the renewal registration form.

††††† Section 6. (1) A person engaged in debt
adjusting shall notify the division in writing at the address shown in Section
2(1)(b) of this administrative regulation, or by electronic mail or fax with
prior approval of the division, within five (5) business days of any cancellation,
nonrenewal, modification, or change, or receipt of notice of any cancellation,
nonrenewal, modification, or change of, the insurance coverage required by KRS
380.040(7), the bond required by KRS 380.040(8) and this regulation, or the
irrevocable letter of credit accepted in lieu of the bond pursuant to KRS
380.040(8) and this administrative regulation.

††††† (2) Except as required by subsection
(1) of this section, within thirty (30) days of any material change in the
information provided on or submitted with the registration form, a registrant
shall notify the division in writing at the address shown in Section 2(1)(b) of
this administrative regulation, or by electronic mail or fax with prior approval
of the division, of each change and submit an updated registration form. The
annual renewal date for the registrant shall not be affected by the filing
required by this section.

††††† (3) A notice or letter from the
division to a registrant may be sent by first-class regular mail to a
last-known address as shown in the registrant's last filing with the division.

††††† Section 7. Incorporation by Reference.
(1) The following material is incorporated by reference: